Employees work at the car production line during organized media tour at the Chinese automaker GWM (Great Wall Motor) plant in Baoding, Hebei province, China, November 24, 2025.

Great Wall Motor (GWM), a major Chinese automaker, plans to establish its first European manufacturing plant with a target of producing 300,000 vehicles annually by 2029, a senior executive confirmed this week. The move aims to strengthen the company's position in the European market and support recovery of regional sales.

Parker Shi, president of GWM International, told Reuters at the company's headquarters in Baoding, Hebei province, that evaluation teams are currently assessing potential factory sites in several countries, including Spain and Hungary. Labour costs, logistics expenses, and component supply chains are key factors in the decision-making process, as initial production will rely on parts shipped from outside Europe.

"All the business cases need to be workable," Shi said. "Otherwise, it will be difficult for us because it's going to be a huge investment for a long term."

The announcement provides the latest update on GWM's European manufacturing strategy since 2023, when company president Mu Feng first confirmed active site selection. The planned facility will produce a full range of powertrain options, from traditional internal combustion engines to battery electric vehicles, to meet diverse customer preferences across the region.

GWM's European registrations for its Ora electric vehicle brand declined 41% last year to 3,706 units, according to JATO Dynamics data, despite the company achieving record overseas deliveries of 453,141 vehicles globally. With an overall goal of reaching 1 million annual overseas sales by 2030, Shi emphasised the need for accelerated progress in Europe.

"That's why we're speeding up the European strategy," he said. "Everything needs to speed up."

The company is closely monitoring European Union industrial policies, investment conditions, and customs duty developments that could affect long-term viability. A new multi-powertrain version of the compact Ora 5 SUV is scheduled for European launch in mid-2026 to appeal to mainstream buyers.

GWM already operates manufacturing facilities in Russia, Thailand, and Brazil. The addition of a European plant would mark a significant step in the company's international expansion and help reduce logistics costs while improving responsiveness to local market demand.

Shi noted that Europe continues to offer substantial growth opportunities for brands offering vehicles across different powertrain technologies. The final location decision will balance production efficiency, supply-chain practicality, and favourable operating conditions to ensure sustainable returns on the multi-year investment.

Pre-orders for the all-electric Ora 5 have begun in China at a starting price of 109,800 yuan, though European pricing remains to be confirmed. The establishment of local production is expected to support competitive positioning against both established European manufacturers and other expanding Chinese automotive brands in the region.

by Reuters